Climate Change and The Real Estate Industry: Mitigation For The Future

by Bharat Rawat Real Esate Marketer

The climate crisis, also known as global warming, is affecting all aspects of life these days. From necessities like drinking water or breathable air to major shifts in living standards, climate change is having a major impact on how the world functions.

In Indian real estate, whether you look at an upcoming new project launch in Gurgaon or commercial properties for leasing in smaller cities, every development has to make changes to account for the effects of climate change. This is why governing bodies and real estate developers themselves, are coming up with ways to factor in the climate impact.

Initiatives by the Government

The Indian government is a part of various programs and has undertaken many initiatives to combat climate change. For instance, India is a part of the United Nations Framework Convention on Climate Change, its Kyoto Protocol, and the Paris Agreement. It has also implemented programs such as the National Action Plan on Climate Change (NAPCC), which comprises missions in specific areas of solar energy, energy efficiency, water, sustainable agriculture, etc.

The government has also laid down the Environmental, Social & Governance (ESG) regulations that have to be followed by corporations, including real estate companies. As part of the ESG regulations, companies are required to disclose the ways in which they are combating climate change. These mandatory disclosures also require the companies to take responsibility for their processes.

In 2021, the Securities and Exchange Board of India (SEBI) introduced the Business Responsibility and Sustainability Report (BRSR), which aims to establish links between the financial results of a business and its ESG performance. Under this reporting, companies are required to respect, protect, and make efforts to restore the environment.

For every new project launch in Gurgaon or any other city, the developers must follow the rules and regulations perfectly and ensure that all their processes, from land acquisition to construction, are done in accordance. If you look at commercial properties for leasing, the property has to follow various guidelines that apply to properties used for commercial undertakings. But how can developers ensure climate change’s effects on the real estate industry are mitigated?

Mitigation by Developers

The real estate industry is a big contributor to total global emissions, mainly from manufacturing building materials and, consequently, the construction process itself. The industry players must incorporate ways to mitigate this crisis, which is to decarbonize the property.

However, how can one decarbonize a building? This is being done globally and especially in India through building an environment for the property. Whether it is a commercial property for leasing in Delhi or an upcoming new project launch in Gurgaon, developers are putting a lot of effort into creating a net-zero future for real estate.

Decarbonization is all about building an ecosystem for the property wherein every aspect of its existence is considered in terms of emissions. This is done through low-carbon development and construction, designing the building to improve energy efficiency, upgrading to the latest technology to improve heating and cooling emissions, and incorporating greener areas in and around the property.

Climate change did not occur overnight, and it did not happen due to individual consumption. With India’s immense population, every industry has had to produce more to cater to the demands. Still, it is important for these industries also to do their best to balance their contribution to the climate crisis. Thus, the Indian real estate industry has ample opportunities to create a net-zero future, and these opportunities do not change whether it is a commercial property for leasing in a Tier-2 city or a new project launched in Gurgaon.

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Created on Mar 3rd 2024 11:32. Viewed 86 times.

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